Total facilities management market estimated to reach to AED 2.11 billion

                            by 2012' - Fountain



    ABU DHABI, United Arab Emirates, Aug. 8 /EMWNews/ -- Boosted by the

boom in commercial, retail and residential sectors and a strong demand for

total facilities management (TFM), the regional market for bundled and

total facilities management in the Middle East is expected to grow at a

CAGR of 19.3% to cross AED 2.11 billion* according to UK's CMPi, organizers

of Working Buildings Middle East, which is scheduled to take place at the

Abu Dhabi National Exhibition Centre on 17th and 18th November 2008.



    "While the boom in construction is fuelling the growth, the main demand

is from the luxury hotels and Multinational Corporations (MNCs) that are

pushing the momentum in the Gulf region," noted Chris Fountain, Group

Director of CMPi.



    Mr. Fountain added that TFM in the region was historically taken into

account only upon the post-construction stage of projects. "In recent times

however, developers are starting to acknowledge the importance of

integrating TFM at the earliest stage possible in order to prevent problems

before they actually occur and hence TFM companies are now involved in the

design stage of construction projects," he stressed.



    "In the past, key decision makers were generally disinclined to

consider total lifecycle costs and chose quick returns on investments and

this reflected in the short-term duration of TFM contracts, this is however

changing now and makes our event a timely platform for global TFM providers

to seek lucrative contracts in the region," Mr. Fountain observed.



    The GCC region's investment in tourism, retail and business services

has led to the massive growth in the construction of new high-end

commercial, residential and retail establishments. Multibillion dollar

mega-projects that involve mixed use of these sectors also exist in the

region, the ownership structure of which normally involves consortia of

MNCs and governments.



    Together with the extreme weather conditions that shorten the lifespan

of buildings, these new developments open up opportunities for high-quality

facilities management.



    "The introduction of Freehold Property Laws in the region, and the

subsequent establishment of Building Committees have made property owners

more conscious in maintaining their properties and Multinational

Corporations (MNCs) and branded hotel chains that have entered the region

have internationally renowned service quality levels, and are helping to

raise the standards of FM," Mr. Fountain added.



    At present, most of the opportunities lie in the emirates, where

although Dubai is still the largest and one of the fastest growing markets

in the Middle East, Abu Dhabi is rapidly picking up. Abu Dhabi is also

investing in top-end hotels, cultural and recreational facilities to

support its ambitious tourism targets, presenting attractive opportunities

for Total FM.



    Another emerging market is Qatar. Growth is expected from the

relaxation of property laws, which now allows foreign nationals to own

freehold title to any real estate, and the attempt to diversify the

country's economy away from oil. The 2006 Asian Games in Doha helped to

stir commercial and residential developments in the country.

Mega-development projects are also underway. However, the region is still

largely dominated by single-service maintenance contractors



    Bahrain is the region's financial centre and offers a long-term

potential for the Total FM sector because of the country's diversification

into tourism, retail and business service sectors.



    Opportunities for the Total FM sector in Oman and Kuwait are lower at

the moment, since these countries' real estate and construction sectors are

not as developed compared with the rest of the GCC countries. In the past

most of the projects were in the public sector and funded by the

government.



    Working Buildings Middle East will provide a valuable opportunity for

local and international companies to showcase their products and services

to the increasingly important Middle East market. The new event has been

designed to target all those involved in the management and maintenance of

buildings and property. Working Buildings Middle East will explore the

latest products, services and best-practice examples relating to the

complete life cycle of a building.



    *The research on bundled & TFM for the ME region has been conducted by

Frost & Sullivan on behalf of CMPi



    http://www.workingbuildingsme.com



    http://www.cmpiuae.com